Mergers Examined and Approved

Michael Hedges September 18, 2009 Follow on Twitter

The urge to merge is more powerful than ever for media companies in Europe. Of course, there are the inevitable synergies. While regulators take a very hard look, the economics favor more consolidation.

A proposed take-over of Austria’s Moser Holdings by Styria Media Group will be given a second, more comprehensive examination by Austrian Federal Competition Authority (Bundeswettbewerbsbehörde BWB). The in-depth study was recommended by the BWB (September 14) because of the deal’s complexity and, ultimately, the size. If finally approved it would be Austria’s biggest media deal.

Both company’s CEO seemed to take the BWB recommendation in stride. "With each procedure the expertise of the BWB in the media widens and deepens,” said Styria chairman Horst Pirker. “Then, after this procedure, the BWB will be well prepared. This is good for this country.”

"It is a fact that this is the biggest media merger the BWB has ever examined,” said Moser CEO Hermann Petz. “So I understand that you want to view all the details. Based on the facts of the situation I am very confident that the process will be successfully concluded.”

Switzerland’s competition commission (Wettbewerbskommission - Weko) has approved the first phase of a planned takeover of Swiss publisher Edipresse by media group Tamedia. Early next year Tamedia will acquire 49.9% of Presse Publications SR SA (PPSR), a wholly owned subsidiary of Edipresse. PPSR publishes several newspapers in the French speaking region of Switzerland.

Sometime in 2011 Tamedia will acquire an additional 0.2% of PPSR. Then, in 2013, it will swallow Edipresse whole, leaving out non-Swiss holdings. Edipresse will be a major shareholder of Tamedia. One sacrifice will be free sheet Le Matin Bleu, reported swissinfo (September 17). Tamedia owns the competing free sheet 20 Minutes, is published in several Swiss cities.

If approved the Styria/Moser deal would produce Austria’s biggest private media group, only public broadcaster ORF larger by revenue. The deal, announced in June, would give Styria Media 68% of Moser Holdings, which would become a subsidiary.

Styria Media publishes Austrian dailies Die Presse, Kleine Zeitung and Wertshaftsblatt in addition to several weeklies and magazines. On the broadcast side, the company owns radio stations Antenne Kärnten and Antenne Steiermark, Austria’s first privately owned radio station. On TV it owns KT1, Sat.1 Österreich and Steiermark 1.

The company has also invested significantly in Southeast Europe, publishing 24sata, Poslovni dnevnik, and Vecernji listin Croatia, Dnevnik in Slovenia and Vijesti in Montenegro

Moser Holdings publishes daily free sheet Tiroler Anzeiger and several weeklies. It also owns radio station Life Radio Tirol. One bonus in the acquisition deal is Moser’s two printing plants. Moser is owned by the Moser family. German media giant Axel Springer held a substantial stake in Moser until 2002 when the family repurchased the shares.

In addition to 20 Minutes (20 Minuten in German) Tamedia publishes Zürich daily Tages-Anzeiger and Berne daily Berner Zeitung and several regional and weekly newspapers. An active acquirer in recent years the company owns television channel TeleZuri and radio stations Radio 24, and Radio Basilisk. Edipresse publishes Le Matin, 24 Heures, Tribune de Genève, and Le Matin Bleu. It also holds a 47% stake in Le Temps. The extensive international holdings of Edipresse are not part of the Tamedia take-over.

Similarities in the two deals are striking. First, and primarily, is the urge to merge. Consolidation of media companies is increasingly inevitable. In both countries consolidation is new and viewed with considerable skepticism, hence extra scrutiny in Austria and a staged take-over in Switzerland. Both deals involve broadcast outlets, only recently allowed. And, media in both countries are dominated by well-financed public broadcasters.

See also in ftm Knowledge

Media in Austria and Switzerland

Media in the alpine countries Austria and Switzerland shares many similarities. In addition to language, there are strong publishers, very strong public broadcasters and emerging private sector radio and television. This ftm Knowledge file looks at the mountains and valleys, innovative and creative. Includes Resources. 63 pages PDF (October 2009)
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